1H20 Results Presentation Outline I. Overview II. Financial - - PowerPoint PPT Presentation

SLIDE 1

Investor Presentation 1H20 Results

August 2020

SLIDE 2

Presentation Outline

I. Overview II. Financial Highlights III. Ownership, Board and Management IV. Sustainability V. Awards and Citations

SLIDE 3

• The Philippines’ largest bank with total

assets of P3.3 Tn (USD66.55 Bn).

• A full-service universal bank with one of

the widest distribution networks consisting of more than 1,400 operating branches and over 4,400 ATMs nationwide.

• Part of the SM Group, one of the

country’s largest conglomerates.

About BDO

3

SLIDE 4

1996 2001 2002 2003 2005 2007 2008 2009 2012 2014 2015 2016 2017 2018 2019

4

Milestones

• Expansion through organic growth and M&As

1967

KB license

1994

P77 BN

Merged with Dao Heng Bank Philippines

P36 BN U/KB license

Acquired 1st e-Bank’s banking business

P121 BN

Acquired UOB Philippines’ branch banking business

P234 BN

Acquired Rural Bank of San Juan’s banking business

P1.2 TN

Acquired Citibank Savings, DB Trust and Real Bank

P1.9 TN

Acquired One Network Bank (rebranded as BDO Network Bank) Acquired by SM Group

1976

Assets P13 BN P617 BN

Merged with Equitable PCI Bank. Acquired Amex Savings Bank Philippines

P2 TN

• Est. as Acme

Savings Bank

Acquired Banco Santander Philippines

P149 BN

Joint Venture with Nomura Securities; Acquired exclusive franchise of Diners Club Int’l and full control of Generali Pilipinas Life (renamed as BDO Life Assurance)

P2.3 TN

Acquired GE Money Bank

P862 BN P802 BN Full-Service Bank Strategy Niche Strategy #19 #17 #13 #9 #9 #5 #2 #1 Ranking Commercial Bank Expansion P2.7 TN P3.0 TN

Acquired RB Pandi banking business

P3.2 TN

SLIDE 5

Full Service Bank

• Complete range of financial products and services

Corporate & Institutional Banking



Corporate and middle market lending



Trade finance



Specialized lending



Financial Institutions



Cross-border financing

Consumer Banking



Auto



Mortgage



Credit cards



Personal loans



Merchant payment processing

Leasing & Finance



Direct lease, sale and leaseback arrangements



Installment paper purchases



Receivable discounting and factoring

Branch Banking



Deposit & related products



Over-the- counter transactions



Cross-selling distribution platform

Treasury Services



Fixed income dealership



Foreign exchange transactions



Portfolio management



Liquidity management

Transaction Banking



Cash management



Electronic banking



ATMs



Prepaid cards



Merchant acquiring



Remittances

Trust Banking



Investment management



Unit investment trust funds



Living trusts



Retirement funds



Special trusts / custodianship

Private Banking



Wealth advisory



Customized portfolio management

Investment Banking



Underwriting & distribution of fixed income &e quity securities



Fin’l advisory



Project finance



Loan syndication

Stock Brokerage



Equities trading



Online stock trading

Insurance



Brokerage (property & casualty)



Bancassurance (individual & group life insurance)

Rural Banking



Salary loans



MSME loans



Deposit products



Cash management



Remittances

5

SLIDE 6

16 International Offices

Luzon 480 Metro Manila 622 Visayas 159 Mindanao 188

Philippine branches as of 30 June 2020

6

Market Reach

• Wide and extensive coverage in key areas

North America – 2

Remittance Offices

Philippines

1,449 Branches[1] 4,400+ATM facilities

Asia – 11

2 Full-service Branch 6 Remittance Offices 3 Representative Offices

Middle East – 1

Representative Office

Europe – 2

Remittance Offices

SLIDE 7

Business Franchise

#1 Customer Loans #1 Deposits #1 Remittances #1 Assets Under Management #1 Private Banking Leading Trade Services Provider2 Major Player in Cash Management3 #1 Rural Banking #3 Leasing & Finance #1 Investment Banking4 #1 Insurance Brokerage5

• Market-leading positions in almost all business lines

#1 Credit Cards1

Notes: 1 In terms of cardholder base, merchant acquiring gross billings, and credit card receivables 2 According to Asian Banking and Finance, Global Finance 3 According to Alpha South East Asia, Asian Banking and Finance, The Asset 4 In terms of debt and equity capital markets corporate issuances, excluding banks’ stock rights offers 5 Among insurance brokers in terms of premiums produced and commissions earned

7

SLIDE 8

2,576 1,828 1,714 1,679 791 785 560 512 503 488

LBP MBT BPI PNB CHIB DBP UBP SECB RCBC

8

Industry Ranking

Total Assets

(in PHP billions)

Source: Company data, consolidated statements of condition (SOC). Ranking as at 31 March 2020 Note: Financials prepared by banks under BSP’s SOC requirements differ slightly from reported financials under SEC guidelines due to certain differences in accounting rules requested by the two authorities.

Gross Customer Loans Customer Deposits Assets Under Management

• No. 1 among Philippine banks

(in PHP billions) (in PHP billions) (in PHP billions)

BDO Market Share – 37% BDO Market Share – 22% BDO Market Share – 18% BDO Market Share – 19%

(in PHP billions)

SLIDE 9

BDO Private Bank,

• Inc. 100%

BDO Capital & Investment Corporation 99.8760% BDO Leasing* and Finance, Inc. BDO - 87.43%, BDO Capital – 1.11% (c ) BDO Network Bank (formerly ONB) 84.87% BDO Remit (USA),

• Inc. 100%

BDO Remit (Japan)

• Ltd. 100%

BDORO Europe Ltd. 100% BDO Remit (Canada) Ltd. 100% Express Padala (HK) Ltd. 100% BDO Remit Limited 100% BDO Remit (Macau)Limited 100% BDO Remit Int’l Holdings B.V. 96.32% Averon Holdings, Inc. 100% BDO Rental,

• Inc. 100%

BANKING / FINANCE

BDO Unibank, Inc.

Armstrong Securities 80%

REMITTANCES INSURANCE PROPERTY

BDO Nomura* Securities, Inc. 51% BDO Strategic Holdings, Inc. 100% BDO Insurance Brokers, Inc. 100% BDO Life Assurance Company (formerly Generali Pilipinas Life Assurance Co.) BDO- 97.0%, BDO Capital- 3.0% Equimark-NFC Development Corp. 60% SM Keppel Land, Inc. 50% Northpine Land, Inc. 20% Taal Land, Inc. 33.33% Unicorn First Properties, Inc. 35% (a)

OTHERS

NLEX Corp. (formerly Manila North Tollways Corp.) 11.7%

• With equity investments in allied and non-allied enterprises

Organizational Structure

** not yet operational. (a) For dissolution (b) Under liquidation (c) Sale subject to regulatory approvals and closing conditions BDO Securities Corporation 100% BDO Remit (UK) Ltd. (formerly CBN London Ltd.) 100% CBN Greece S.A. 99.92% (b) BDO Remit (Ireland) Designated Activity Company. 100% BDO remit (Spain) (CBN Remittance Center S.A.) 99.99%

Stockholders of BDO Financial Allied Subsidiary Financial Allied Affiliate Non-Financial Allied Subsidiary Non-Allied Undertaking Subsidiary/Affiliates of BDO Subsidiaries Non-Financial Allied Affiliate

*BDO announced an agreement on the fundamental principles to buy

• ut Nomura Holdings, Inc.’s

(Nomura) entire holdings in their joint venture arrangement under BDO Nomura Securities, Inc (BDO Nomura)

SLIDE 10

The Banker Top 1000 World Banks – Tier 1 Capital 2018

10

USD Million 224 Rank Origin Bank 228 225 227 230 231 232 233 226 229 5,508 5,499 5,400 5,391 5,342 5,303 5,281 5,281 5,265 5,257 Turkiye Halk Bankasi Raymond James Kyushu Financial Group Bank of Zhengzhou BDO Unibank Bank Nederlandse Gemeenten Iyo Bank Mashreqbank Ban Pekao Bank of India

SLIDE 11

5,342 4,700 4,414 2,037 1,916 1,890 1,408 1,281

1000 2000 3000 4000 5000 6000

MBT BPI LBP SECB PNB CHIB RCBC

The Banker Top Philippine Banks – Tier 1 Capital 2018

USD Million Bank 1 Rank 2

3

4 5 6 7 8

Acronyms: BDO BDO Unibank MBT Metropolitan Bank & Trust Co. BPI Bank of the Philippine Islands PNB Philippine National Bank CHIB China Banking Corp. RCBC Rizal Commercial Banking Corp. LBP Land Bank of the Philippines SECB Security Bank Corp.

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SLIDE 12

Credit Ratings

Moody’s Fitch 28-Jan-2020 12-May-2020 Outlook Stable Stable Bank Deposits (Foreign/Local) Long Term Baa2 BBB- Short Term P-2 F3 Senior Unsecured debt (Foreign) Baa2 BBB- Other Short Term (P)P-2 BCA/Viability Rating Baseline Credit Assessment (BCA) baa2 Adjusted BCA Rating baa2 Viability Rating bbb- Support Rating 2 Support Rating Floor BBB- Counterparty Risk Rating (CRR)* (Foreign/Local) Long Term Baa1 Short Term P-2 Counterparty Risk (CR) Assessment (Local) Long Term Baa1(cr) Short Term P-2 (cr) Source: Moody’s, Fitch

12

SLIDE 13

Trading Fact Sheet

Stock Details Type Common Shares Stock Ticker BDO ISIN PHY077751022 Exchange Philippine Stock Exchange Par Value P10.00 Outstanding No. of Shares* 4,383,834,553 Foreign Ownership Up to 40% American Depositary Receipts (ADR) Program Details Type Sponsored Level 1 ADR ADR Ticker BDOUY ISIN US05537Y3045 Ratio 1 ADR = 10 Ordinary Shares Depositary Bank Deutsche Bank Trust Company Americas Contact Details ADR Broker Helpline Tel (New York) + 1 212 250 9100 Tel (London) + 44 207 547 6500 Email adr@db.com ADR website www.adr.db.com Depositary Bank's Local Custodian Deutsche Bank AG, Manila

*As of July 20, 2020

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Presentation Outline

I. Overview II. Financial Highlights III. Ownership, Board and Management IV. Sustainability V. Awards and Citations

SLIDE 15

1H20 P&L

(in PHP billion) 1H20 1H19 YoY% Interest Income 80.9 79.4 2% Interest Expense 14.5 22.5

• 36%

Net Interest Income 66.4 56.9 17% Non-interest Income 24.8 29.5

• 16%

Fee Income 13.4 16.7

• 20%

Insurance Premiums 7.0 6.9 3% Trading & FX 2.4 3.6

• 33%

Others 1.9 2.4

• 19%

Gross Operating Income 91.2 86.4 5% Operating Expense 56.0 56.5

• 1%

Policy Reserves 2.1 4.6

• 53%

Pre-Provision Operating Profit 35.1 29.9 17% Provisions 22.4 3.0 651% Net Income Before Tax 12.7 26.9

• 53%

Taxes 8.5 6.8 24% Net Income 4.3 20.2

• 79%

Return on Common Equity 2.3% 12.0% BDO Conso

15

SLIDE 16

2Q20 Balance Sheet

(in PHP billion) 2Q20 2Q19 YoY% Resources Reserve Assets 571.9 509.3 12% Investment Securities 423.9 427.7

• 1%

Gross Customer Loans 2,260.8 2,043.1 11% Investment Properties 16.7 19.8

• 16%

Other Assets 44.6 65.4

• 32%

Total Resources 3,317.7 3,065.3 8% Liabilities Deposits 2,607.4 2,399.6 9% CASA 2,011.7 1,686.4 19% Bills Payable/Sub-Debt 179.3 176.8 1% Insurance Contract Liab. 50.8 36.2 40% Other Liabilities 112.8 102.0 11% Total Liabilities 2,950.3 2,714.5 9% Total Capital 367.5 350.8 5% Total Liabilities & Capital 3,317.7 3,065.3 8% BDO Conso

16

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20% 14% 17% 19% 16% 11% 11% 20% 17% 16% 18% 15% 9% 11% 5% 10% 15% 20% 25% 2014 2015 2016 2017 2018 2019 1H20

Industry BDO

(a) U/KBs as of May 2020

a

15% 17% 17% 22% 30% 24% 2% 20% 17% 16% 18% 15% 9% 11% 0% 5% 10% 15% 20% 25% 30% 35% 2014 2015 2016 2017 2018 2019 1H20

Growth in Interest income from Loans Only (YoY) Loan Growth (YoY)

17 BDO Loan Growth vs. Industry BDO Loan Growth vs. Interest Income Growth

Loan growth negated by declining rates Good volume growth with stable yields Growth tempered by lower rates

30-day loan moratorium: end of ECQ on May 2020

SLIDE 18

9.8% 10.5% 10.0% 9.3% 10.3% 10.6% 18 Capital Ratiosa Net Income & ROE

ROCE

a Per SOC, BSP

Industry ROEc CAR

Parent Conso 25.0 26.2 28.1 32.7 44.2 4.3 13.6% 12.7% 10.2% 10.7% 12.8% 2.3%

• 10.0%
• 5.0%

0.0% 5.0% 10.0% 15.0%

10 20 30 40 50 60 2015 2016 2017 2018 2019 1H20

(in P bn)

Net Income Min CET1 ratio w/ DSIB: 1Q19-3Q19 11.0% 4Q19-1Q20 10.5% 2Q20 8.0%

b b Annualized c U/KBs; as of March 2020

SLIDE 19

19

Income Statement

(in PHP billion) 2015 2016 2017 2018 2019 1H20 Interest Income 72.1 82.0 99.8 129.1 160.6 80.9 Interest Expense 15.2 16.4 18.0 30.7 40.7 14.5 Net Interest Income 57.0 65.6 81.8 98.3 119.9 66.4 Non-interest Income 31.8 41.6 47.2 49.7 60.6 24.8 Fee Income 19.4 22.2 28.9 30.7 35.3 13.4 Insurance Premiums

• 8.1

9.9 11.8 14.8 7.0 Trading & FX 7.2 4.8 3.9 2.2 5.7 2.4 Others 5.3 6.5 4.5 5.0 4.9 1.9 Gross Operating Income 88.8 107.2 129.0 148.0 180.5 91.2 Operating Expenses 55.1 70.0 84.9 98.0 115.2 56.0 Policy Reserves

• 4.3

5.8 5.2 8.9 2.1 Pre-Provision Operating Profit 33.7 37.2 44.1 49.9 65.4 35.1 Provisions 3.0 3.8 6.5 6.3 6.2 22.4 Income bef. Pre-Acquisition 30.7 33.4 37.6 43.6 59.2 12.7 Pre-Acquisition Income

• (0.4)
• Taxes

5.7 6.8 9.5 11.0 15.0 8.5 Net Income 25.0 26.2 28.1 32.7 44.2 4.3

SLIDE 20

20

Balance Sheet

(in PHP billion) 2015 2016 2017 2018 2019 2Q20 Resources Reserve Assets 461.7 511.0 509.7 534.4 450.7 571.9 Investment Securities 225.8 269.0 332.9 385.2 435.9 423.9 Gross Customer Loans 1,279.4 1,482.0 1,754.9 2,020.1 2,208.1 2,260.8 Investment Properties 14.6 15.2 18.0 19.8 16.9 16.7 Other Assets 49.9 47.8 52.5 62.8 77.3 44.6 Total Resources 2,031.3 2,325.0 2,668.1 3,022.2 3,188.9 3,317.7 Liabilities Deposits 1,663.9 1,905.2 2,121.0 2,420.0 2,485.2 2,607.4 Bills Payable/Sub-debt 107.6 110.6 140.5 153.7 177.6 179.3 Insurance Contract Liab.

• 20.6

26.0 28.5 42.5 50.8 Other Liabilities 60.2 71.1 82.3 92.0 113.0 112.8 Total Liabilities 1,831.6 2,107.4 2,369.8 2,694.1 2,818.3 2,950.3 Total Capital 199.6 217.6 298.3 328.1 370.6 367.5 Total Liabilities & Capital 2,031.3 2,325.0 2,668.1 3,022.2 3,188.9 3,317.7

SLIDE 21

Financial Performance Indicators

2015 2016 2017 2018 2019 1H20 Profitability Return on Ave. Common Equity 13.6% 12.7% 10.2% 10.7% 12.8% 2.3% Return on Average Assets 1.3% 1.2% 1.1% 1.1% 1.4% 0.3% Margins and Liquidity Net Interest Margin (NIM) 3.2% 3.2% 3.5% 3.6% 4.2% 4.4% Loan to Deposit Ratio 76.9% 77.8% 82.7% 83.5% 88.8% 86.7% Liquid Assets to Total Assets 33.8% 33.5% 31.6% 30.4% 27.8% 30.0% Liquidity Coverage Ratio (LCR) 108.4% 138.9% Cost Efficiency Cost to Income Ratio 62.1% 65.3% 65.8% 66.3% 63.8% 61.5% Cost to Assets Ratio 2.8% 3.2% 3.4% 3.4% 3.7% 3.4% Asset Quality NPL Ratio 1.08% 1.15% 1.09% 0.96% 1.13% 1.95% NPL Cover 171.8% 144.6% 149.6% 188.7% 169.0% 139.4% Capital and Leveragec CET1 11.3% 10.6% 12.9% 12.1% 12.6% 12.7% Tier 1 Ratio 11.7% 10.9% 13.1% 12.3% 12.8% 12.9% Capital Adequacy Ratio (CAR) 13.3% 12.3% 14.5% 13.7% 14.2% 13.8% Basel III Leverage Ratio (BLR) 10.0% 9.7%

aPer BSP Circ. 941

8 9 10 11 12 12

bPer BSP Circ. 1011

8 9 10 11 12 12

cPer SOC, BSP

Basel III

a a a b b b a

21

SLIDE 22

Presentation Outline

I. Overview II. Financial Highlights III. Ownership, Board and Management IV. Sustainability V. Awards and Citations

SLIDE 23

Shareholder Structure

• Majority owned by the SM Group

As of 30 June 2020 Name Nationality Shareholdings Percentage

• f

Ownership SM Investments Corp. Filipino 1,750,930,649 39.94% PCD Nominee Foreign 1,207,796,709 27.55% PCD Nominee Filipino 929,747,534 21.21% Multi-Realty Development Corporation SM Prime Holdings Filipino Filipino 282,890,230 90,024,395 6.45% 2.05% Sub-Total, Top Shareholders 97.20% Total Shares Outstanding* 4,383,422,687

Source: Top 100 Shareholders as of 30 June 2020

23

*Number of chares outstanding subsequently increased to 4,383,834,553 as of July 20,2020 due to the purchase of additional common shares by the Bank’s eligible senior officers pursuant to the Banks employee stock option/grant program and issuance of additional shares as a result of the recently concluded stock rights offer.

SLIDE 24

24

Financial Services Property Retail

Access to SM’s customer network

• Over 18,800 PHL tenants
• More than 9,500 suppliers
• 4.4 million average daily foot

traffic (not including China)

• In-house business
• Home mortgage financing

for SM property projects

New business

• pportunity
• Goodwill from the SM

franchise

• Joint product development

SM expertise

• Middle market knowledge
• Expertise in retail market

and real estate

Branch locations

• Branches, ATMs in SM malls
• One of the leading property

developers in South East Asia with strong presence in lifestyle mall

• perations and residential

developments

• Dominant domestic mall

developer/operator - 74 malls in the Philippines with GFA of 8.5 mn sqm (with 7 more malls in China).

• Largest local retail chain with 2,852

stores nationwide (65 The SM Store, 1,600 specialty retail outlets, 58 SM Supermarkets, 52 SM Hyper- markets, 259 Savemore, 60 WalterMart, and 815 Alfamart).

• Biggest domestic banking
• perations
• Interests in BDO and China Bank

The SM Group

• Harnessing synergies with the country’s largest conglomerate

SLIDE 25

Board of Directors

25

7 directors have an average

• f 35 years of banking

experience, including a former Partner and Head of Asia Financials Research at Goldman Sachs Experienced Bankers 1 director is a senior partner in one of the most prestigious law firms in the Philippines while another is a bar topnotcher and member

• f the New York State Bar

Legal Experts 2 directors are successful businesspersons who have made their mark in their respective fields Successful Entrepreneurs

Christopher A. Bell-Knight

Director — re-elected to the Board in 2013  Previously served as BDO Director from May 2005 - Sep 2010  Former VP and Country Head of the Bank of Nova Scotia  Associate of the Chartered Institute of Bankers - British

Jesus A. Jacinto Jr.

Vice Chairman — first appointed to the Board in 1996  Chairman and President of BDO Insurance Brokers  Chairman and President of Jaces Corp.  MBA Columbia University

Teresita T. Sy

Chairperson — first appointed to the Board in 1977  Serves as Director in multiple subsidiaries of BDO  Vice Chairperson of SMIC and Director of other SM Group companies, including Multi-Reality Dev. Corp.

Dioscoro--Roy I. Ramos

Independent Director — first appointed to the Board in 2016 CIO of RY&S Investments Ltd., Hong Kong since 2011 Former Partner and Head of Asia Financials Research from 1994 to 2011 at Goldman Sachs

Jones M. Castro Jr.

Lead Independent Director — first appointed to the Board in 2012  Served as Head for South Asia and SEA at Wells Fargo Bank  MBA Stanford University

Jose F. Buenaventura

Independent Director — first appointed to the Board in 2013 Senior Partner of Romulo Mabanta Buenaventura Sayoc & De Los Angeles Law Offices since 1976 Master of Laws from Georgetown University Law Center

Josefina N. Tan

Director — first appointed to the Board in 2007  Former President of BDO Private Bank  Former Director of EPCIB from 2005 to 2007  Former Director of Banco de Oro from 2001 to 2005 Nestor V. Tan

President and CEO — first appointed to the Board in 1998  Former COO of the Financial Institution Services Group of BZW, the investment banking subsidiary of the Barclays Group  Holds Directorships of numerous BDO subsidiaries  MBA Wharton School

Gilberto C. Teodoro

Independent Director – first appointed to the Board in 2014  Served as Secretary of National Defense from 2007-2009  Masters of Laws from Harvard Law School  Topnotcher, 1989 Philippine Bar Examinations

Vicente S. Perez, Jr

Independent Director — first appointed to the Board in 2019  Served as Secretary of the Department of Energy 2001-2005  Chairman of Altenergy and Solar Pacific  MBA Wharton School

George T. Barcelon

Independent Director — first appointed to the Board in 2019  Currently Chairman of the Philippine Chamber of Commerce and Industry  The visionary behind Integrated Computer Systems Inc., a Top 1000 company

• With broad business and professional experience

SLIDE 26

26

Corporate Support Products, Services and Subsidiaries Intermediation

Nestor V. Tan President and CEO  With BDO since 1997  Over 38 years of banking experience Evelyn C. Salagubang Head — HRG Recruitment  With BDO since 2007  Over 26 years experience in HR Roberto E. Lapid President — BDO Leasing and Finance  With BDOLF since 1993  Over 35 years of banking experience Maria Theresa L. Tan General Manager — BDO Insurance Brokers  With BDO since 2009  Over 23 years banking and insurance experience Walter C. Wassmer Head — Institutional Banking  With BDO since 1997  Over 31 years of banking experience Lucy Co Dy Head — Controllership  With BDO since 1985  Over 31 years of banking experience Estrellita V. Ong Head — Internal Audit  With BDO since 2011  Over 24 years experience in audit Frederic Mark S. Gomez Head — I.T.  With BDO since 2017  Over 30 years of financial and I.T. experience Jaime C. Yu Head — Branch Banking  With BDO since 1997  Over 35 years of banking experience Edwin Romualdo G. Reyes Head — Transaction Banking  With BDO since 2015  Over 31 years banking experience Eduardo V. Francisco President — BDO Capital & Investment  With BDO since 1999  Over 31 years of banking experience Jesus Antonio Saldaña Itchon President, BDO Network Bank  With BDO since 2017  Over 31 years of banking experience Evelyn L. Villanueva Head — Risk Management  With BDO since 2002  Over 31 years of banking experience Albert Santiago Yeo President — BDO Private Bank  With BDO since 2017  Over 33 years of banking experience Renato Vergel de Dios President & CEO – BDO Life Assurance  With BDO since 2016  Over 41 years of insurance experience Rolando C. Tanchanco Head — Consumer Banking  With BDO since 2004  Over 26 years of banking experience Luis S. Reyes Jr. Head — IR & Corplan  With BDO since 2003  Over 40 years of banking experience Ricardo V. Martin COS-OP, Head — Compliance and Legal  With BDO since 2007  Over 37 years banking experience Alvin C. Go Head — Legal  With BDO since 2013  In the practice of law for 31 years Dalmacio D. Martin Head — Treasury  With BDO since 2009  Over 31 years of banking experience Rafael G. Ayuste Jr. Head — Trust and Investments  With BDO since 2014  Over 30 years of banking experience Joseph Albert L. Gotuaco Head — Central Operations Group  With BDO since 2019  Over 30 years of banking experience

• Atty. Federico P. Tancongco

Chief Compliance Officer  With BDO since 2005  Over 25 years of banking experience

Senior Management Team

• With extensive professional banking expertise

SLIDE 27

Presentation Outline

I. Overview II. Financial Highlights III. Ownership, Board and Management IV. Sustainability V. Awards and Citations

SLIDE 28

Sustainability Report for 2019

Outlines BDO’s sustainability strategies covering:

• Products
• Sustainability contribution
• Human capital
• Disaster response
• Governance

Reports on the Bank’s 2019 economic, environmental, social and governance performance Prepared in accordance with the GRI Standards: Core

• ption and completed the GRI Materiality Disclosures

Service

28 Click here

Full report can be accessed at: www.bdo.com.ph under Company Disclosures: https://www.bdo.com.ph/sites/default/files/pdf/BDO-2019-Sustainability%20Report.pdf

A substantiation

• f

BDO’s commitment to the UN Sustainable Development Goals, principles of UN Global Compact and Greenhouse Gas Protocol

SLIDE 29

BDO’s Path in Creating Shared Value

SLIDE 30

In Support of the UN Sustainable Development Goals

SLIDE 31

Sustainability Philosophy

We seek to achieve strategic resilience by incorporating sustainability in the way we do business. We aim to embed sustainability principles when making decisions, assessing relationships, and creating products

31

Alignment with the United Nations Global Compact Principles

BDO supports the principles of the United Nations Global Compact. The Bank upholds:

• Corporate governance
• Climate-friendly solutions and opportunities for business
• Access to clean, renewable, and reliable energy sources and services
• The adoption of instruments that help quantify, manage, and report the carbon

footprint of our businesses

• The responsibility to protect the dignity of every person and uphold human rights
• The recognition of the role of women in achieving economic growth and poverty

reduction

• The elimination of all forms of forced, compulsory, and child labor

SLIDE 32

Sustainability Framework

32

SLIDE 33

ESG Recognition / Awards

Silver Awardee Corp Governance Scorecard Awardee for fourteen (14) consecutive years Among the Best Companies in the Philippines in CSR and Environmental Responsibility Platinum Award Among the recipients of the 6th and 7th Asian Excellence Award

Corporate Governance Asia

Teresita T. Sy-Coson Asian Corporate Director Award

Institutional Investor

One of the 15 Recipients of the Institutional Investor Governance Awards 2016

ASEAN Corporate Governance Scorecard

Among the Top 50 Publicly-Listed Companies 2013-2018

Asian Banking & Finance

Corporate Social Responsibility Program

• f the Year – Gold (2017-2018)

33 BDO Unibank is a constituent of the FTSE4Good Index

http://www.ftse.com/products/indice s/FTSE4Good

2019 Asia Corporate Excellence and Sustainability (ACES) Awards

Industry Champion of the Year

Forbes 2018 GLOBAL 2000

Top Regarded Companies (#140) Top World’s Best Employers (#24)

SLIDE 34

Presentation Outline

I. Overview II. Financial Highlights III. Ownership, Board and Management IV. Sustainability V. Awards and Citations

SLIDE 35

Awards and Citations, 2015-2020 Best Bank in the Philippines

Asiamoney FinanceAsia Euromoney Global Finance

Philippine Bank of the Year 2016

Charlton East Coles

Top 15, Philippine Company of the Year 2016

The Banker

Bank of the Year, Philippines

The Asset

Best Domestic bank, Philippines (2014-2018)

The Asian Banker

Strongest Bank, Philippines (2018-2019)

35

SLIDE 36

Best Debt/Equity, M&A House Best Investment Bank Best Private Bank Best Project Finance Bank Best Retail & Wholesale Bank

Awards and Citations, 2015-2020

Best Investment Bank/Deals Best Private Bank Best Project Finance Bank/Deals Best Wholesale Bank

Fund House of the Year - Philippines Best in Treasury & Working Capital – SMEs in the Philippines

FinanceAsia FinanceAsia FinanceAsia The Asset The Asset The Asset The Asset The Asset Euromoney Global Finance Asian Private Banker Asiamoney Asiamoney AsianInvestor Euromoney Asiamoney Project Finance Magazine Global Finance World Finance

Best Investment Management Company

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Best in Trade Finance Best in Fund Management Best FX Bank/ Provider

Awards and Citations, 2015-2020

Best in Internet Banking Best Retail Bank

The Asset

Best in Internet Banking Best in Trade Finance

Best in Deposit Initiatives

The Asian Banker

Best in Cash Mgt. & Transaction Banking Best FX Bank/ Provider Best in Social Media Initiatives

The Asian Banker The Asian Banker

Best Retail Bank in the Philippines Best Trade Finance Provider in the Philippines 2016 Cash Management Poll as voted by Corporates On-line Banking Initiative

• f the Year

Automotive Lending Initiative

• f the Year

Mortgage & Home Loan Product of the Year

The Asian Banker Asian Banking & Finance Asiamoney

Asian Banking & Finance Asian Banking & Finance Global Finance

BSP

Outstanding PhilPaSS Participant Servicing Customer ePayments for Commercial Banks Gold Award - Top Commercial Bank that Generate the Largest Overseas Filipino Remittances

Asian Banking & Finance

Social Media Initiative of the Year

The Asset

Best Retail Social-Media Banking Experience, Philippines (2015-2018)

The Asset

The Mortgage Product of the Year (2018) Mortgage Business of the Year

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Excellence in Investor Relations Best in Trade Finance Best in Fund Management Best FX Bank/ Provider

Awards and Citations, 2015-2020

Best in Internet Banking

Asiamoney FinanceAsia

Among the Most Trusted Brands

Reader’s Digest

Asset Management Company of the Year

The Asset

Impact Investor of the Year Award

Best FX Bank/ Provider Best in Fund Management Excellence in Leadership & Management Excellence in Investor Relations

(Individual Awards)

Best Managed Company in the Philippines – Large Cap

FinanceAsia

Among the Best Managed Public Companies

Asiamoney

Nestor V. Tan Best Executive Most Organized Investor Relations Best IR Company (Philippines) Among the Best Senior Management IR Support Teresita T. Sy-Coson Asia’s Best CEO Award Best FX Provider in the Philippines Best Investment Management Company - Philippines Teresita T. Sy (2016) Nestor V. Tan (2019) Management Man of the Year Among the Best at Investor Relations

FinanceAsia

Management Association of the Philippines

World Finance Global Finance Corporate Governance Asia

Luis S. Reyes, Jr. Best IR Professionals (Phils)

Corporate Governance Asia

Nestor V. Tan. Asia’s Best CEO Award Best Corporate Communications Best Wealth Manager, Philippines (2017)

Institutional Investor

Nestor V. Tan Best CEO – Emerging Markets (Philippines)

Corporate Governance Asia

15th Asian ESG Awards 2019

Teresita T. Sy-Coson, Chairperson Asian Corporate Director of the Year Nestor V. Tan President & CEO Asian Corporate Director of the Year

International Banker

Nestor V. Tan Banking CEO of the Year (2019)

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39

Legal Disclaimer

This presentation and the information contained herein as well as the materials distributed herewith ("Presentation") are the sole and exclusive property of BDO Unibank, Inc. (“BDO”) and shall only be used for the purpose intended herein. None of the information contained in this Presentation constitutes a solicitation, offer, opinion, or recommendation by BDO to buy or to sell any securities or financial instrument or to provide any investment service or investment advice. The information contained in this Presentation is based

• n carefully selected sources believed to be reliable but no representation or warranty as to its accuracy or completeness is made. All

statements in this Presentation, other than statements of historical facts, that address activities, events, or developments that BDO expects or anticipates will or may occur in the future (including but not limited to projections, targets, estimates and business plans) are forward-looking statements. BDO’s actual results or developments may differ materially from those expressed or implied in these forward-looking statements as a result of various factors and uncertainties, including but not limited to price fluctuations, actual demand, exchange rate fluctuations, market shares, competition, changes in legal, financial and regulatory frameworks, international economic and financial market conditions, political risks, cost estimates, and other risks and factors beyond our control. Your use of the Presentation shall be at your sole risk and you shall form your own conclusions as to the reliability of any information presented and as to any conclusions to be drawn therefrom. BDO shall not be directly or indirectly liable, in any way, for any inaccuracies, errors,

• r omissions in the Presentation , including but not limited to any quotes or financial data contained therein, nor for any damages

resulting therefrom. Any opinion/data/forward-looking statements herein reflected may be subject to change by BDO without notice.

Investor Relations & Corplan: 4/F South Tower, BDO Corporate Center 7899 Makati Avenue, Makati City 0726, Philippines Phone: (632) 8 840 7000 (loc. 6069) Fax: (632) 8 878 4151 Email: irandcorplan@bdo.com.ph Website: www.bdo.com.ph Facebook: https://m.facebook.com/BDOUnibank/ YouTube: https://www.youtube.com/user/BDOPhilippines

Other Relevant Links: BDO 2019 Annual Report https://www.bdo.com.ph/sites/default/files/pdf/BDO-Unibank-2019-Annual-Report.pdf BDO 2019 Annual Report Financial Supplements https://www.bdo.com.ph/sites/default/files/pdf/BDO%20Unibank%202019-Annual-Report-Financial-Supplements.pdf BDO 2019 Audited Financial Statements https://www.bdo.com.ph/sites/default/files/pdf/BDO%20- %20Audited%20Financial%20Statements%20(February%2027,%202020).pdf

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Thank you. www.bdo.com.ph